Replies to post #45 on Redman''s

[Jman9000]

APBS

In the 8K, it explained that the sharp volume drop in 2009 was driven by some construction on a bridge that limited access to the cemetary that has since been completed.

It sounded a little odd. While I haven't been there to see it first hand, every cemetary (admittedly not that many) I have been to has had multiple entrances. I'm not sure I believe that a bridge can have that sizable of an impact, but I don't really know for sure.

Jman

[redman_2014]

APBS - choppy results

1) The FY2009 results had negative growth because a bridge on the main access road to the cemetery was being upgraded due to the Three Gorges Dam raising the water level of the region and therefore was shutdown for a while.

2) I do not know the exact reason for them projecting a drop in income for 2012 but my guess is it has to do with the expansion of phase three and the extra costs involved.

3) They may have to purchase the 70+ extra acres, unsure as of now. If they did it probably wouldn't cost much more than $12M if the cost/per acre is similar to the land they purchased for $2M.

4) The $10M capital raise is an issue for me aswell, but the uplisting will help avoid a poor deal.


I am still searching for info on this one since it's still fairly new. I haven't started a position but I think it has more potential than it seems at first glance. There are a lot of upfront costs involved with cemeteries and they are still in the development stages but are quite profitable nonetheless. Based on the projections I don't think they accounted for much of their intended price increase to $7,500 so their could be some hidden upside potential. I have to work the numbers some more to see if that's the case.


-Adam